Equity sharing

Equity sharing

The equity sharing scheme is part of the House Sales Scheme. It lets our tenants buy their homes at a discount. Equity sharing lets you buy part of your home, and rent the remaining part from us. Both you and the Housing Executive would then own a share of your home.

To be able to buy your home through equity sharing, you have to meet all of the criteria under the House Sales Scheme.

House Sales Scheme Criteria

The minimum share you can buy is 25%. You can then buy additional equity. This is known as staircasing. If you decide to buy additional equity then you have to buy at least 5% each time.

The amount of discount that you get depends on the amount of equity that you purchase.

  • Find out how the discount on your house is worked out here

Your rent will be reduced based on the share of the property that you have bought. The rent will also be reduced to cover maintenance of the property. This deduction will remain the same for as long as you continue to pay rent for a part of your home.

We review the rental levels for all of our properties every year. Your rent may be increased as part of the annual review.

When you complete your equity purchase you will become a leaseholder. You can apply for Housing Benefit for the rented share of your home.

You will be responsible for the:

  • cost of all maintenance and repairs
  • payment of rates
  • service charges if you live in a flat
  • buildings and contents insurance
  • solicitor and building society valuation fees
  • independent valuation required to buy further equity in your home (“staircasing”
  • payment of agency fees if you challenge the valuation of your home in further equity purchases

If you decide to sell your home within the first 10 years of buying equity then we must be given the option to buy back this part of your home.  If we don’t buy it, you can sell it on the open market. We will then recover any equity that you owe to us at that time.  

For example: you decide to buy 50% equity in your home with a market value of £70,000. Your share costs you £35,000.

In year 10 you decide to sell your home, and we choose not to buy back the 50% share from you.

We will then have the house valued.  If it is valued at £120,000 then you must pay us 50% equity on the £120,000 (or £60,000).

You must also pay any remaining mortgage on your home.


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How we assess the property price
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